Taiwan Semiconductor Sees Significant AI Market Growth in 2025, Stock Price Expected to Rise
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 23 2025
0mins
Source: Fool
- Market Leadership: Taiwan Semiconductor holds a 34% share in the semiconductor foundry market and is responsible for approximately 85% of startup product prototypes, ensuring its core position in the AI supply chain and attracting significant investor interest.
- Revenue Growth: In Q3, high-performance computing, including AI products, accounted for 57% of total revenue, with a year-over-year increase of 40.8%, demonstrating strong market demand and ongoing business expansion potential.
- Strategic Investment: The company is investing $165 billion in Arizona to establish new manufacturing facilities, which not only enhances production capacity but also effectively mitigates tariff challenges in the U.S. market, laying a solid foundation for future growth.
- Diversified Client Base: Collaborating with 500 companies allows Taiwan Semiconductor's products to power 12,000 different technologies, and while AI business is rapidly growing, its diversified presence in smartphones and IoT provides stable revenue streams.
Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 313.46 USD with a low forecast of 63.24 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 326.120
Low
63.24
Averages
313.46
High
390.00
Current: 326.120
Low
63.24
Averages
313.46
High
390.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
